Magic Eden, the NFT marketplace that reached a valuation of $1.6 billion in 2022, has completed the acquisition of Slingshot Finance, a mobile-first on-chain trading application. This marks the company’s first significant acquisition and a major step into the broader crypto trading market. While Magic Eden has previously focused on non-fungible tokens, this move signals a shift toward more comprehensive crypto services, including multi-chain token trading aimed at competing with centralized exchanges.

NFT Marketplace Magic Eden Acquires Slingshot

Magic Eden x Slingshot

Jack Lu, co-founder and CEO of Magic Eden, described the acquisition as a strategic bet on the future of token trading. According to Lu, Slingshot's technology allows users to trade millions of tokens across more than ten blockchains without having to understand the underlying technical processes such as bridging, gas fees, or token approvals. Supported chains include Solana and Ethereum, with Bitcoin integration expected soon.

Improving Cross-Chain Trading Experience

Slingshot Finance is known for its chain abstraction technology, which simplifies the user experience by removing the need to manage interactions across different blockchain networks. This aligns with Magic Eden's goal of offering a more accessible and efficient trading platform. While Magic Eden already had basic cross-chain swap features, the integration of Slingshot extends its capabilities, allowing users to access a wider range of tokens and more advanced trading tools.

Lu stated that Slingshot operates as a pure multi-chain token trading app, providing a broader and more powerful experience than Magic Eden’s existing tools. With the integration, the platform will now support trading for over 5 million tokens. The company believes this development will allow it to offer services comparable to those of centralized exchanges, but within a decentralized, on-chain framework.

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NFT Market Remains a Core Focus

Although this acquisition represents a step into new territory, Magic Eden has not shifted its focus away from NFTs. Lu emphasized that the company remains committed to the NFT space despite declining trading volumes and reduced market attention. He noted that Magic Eden generated $75 million in revenue from NFT-related activities last year and believes that NFTs are still in the early stages of development.

According to Lu, the next phase of NFT adoption will be driven by real-world utility rather than market speculation. He suggested that broader adoption will come through practical applications and improved user experiences, potentially driven by recognizable brands or user-friendly platforms that can bring new participants into the space.

Deal Details and Team Integration

The terms of the acquisition were not publicly disclosed, but the deal appears substantial. Slingshot was founded in 2020 and has raised $33 million in funding from investors including Coinbase Ventures, Ribbit Capital, and Electric Capital. The funding history includes a $3 million seed round, a $27.5 million Series A round with an extension, and a $2.5 million insider round.

All team members from Slingshot will be joining Magic Eden as part of the deal. While the specific team size was not disclosed, it is estimated to be between 11 and 50 individuals. Magic Eden currently has just over 150 full-time employees and does not have immediate plans for further expansion.

Both companies worked directly on the transaction, with legal support provided by law firms Cooley and Cahill. Clinton Bembry, co-founder and CEO of Slingshot, is a repeat entrepreneur in the crypto space. His previous venture, Astro Wallet, was acquired by Coinbase in 2019. The Slingshot acquisition marks his second exit in the industry.

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Expanding Within the Web3 Ecosystem

Magic Eden’s acquisition of Slingshot reflects a broader trend among web3 companies seeking to diversify their offerings and strengthen their presence in the evolving crypto landscape. While maintaining a strong position in the NFT market, Magic Eden is also positioning itself to offer a more complete set of tools for digital asset trading.

The company launched its own token in December. With the integration of Slingshot, Magic Eden is aiming to provide a user-friendly, on-chain trading experience that could appeal to a wider crypto audience while staying aligned with the principles of decentralization.